Savings & Investment Quiz
1. A certificate of deposit must be held for a set amount of time such as six months or a year.
True
False
2. Compound interest refers to money earned from buying a tax-exempt investment.
True
False
3. A share of stock represents ownership in a company.
True
False
4. A mutual fund is an investment issued by a state or local government agency.
True
False
5. Compound interest makes money grow faster.
True
False
6. Compound interest refers to money earned from buying a tax-exempt investment.
True
False
7. A certificate of deposit must be held for a set amount of time such as six months or a year.
True
False
8. A share of stock represents ownership in a company.
True
False
9. Treasury bonds are a safer investment than real estate.
True
False
10. The lowest interest rate is usually earned on a:
money-market account.
certificate of deposit.
passbook account.
mutual fund.
11. The total interest earned on $100 for two years at 10 percent (compounded annually)
would be:
$2
$21
$11
$10
12. Based on the rule of 72, money earning 6 percent would take about (fill in the blank)
years to double.
6
8
9
12
13. Which of the following increases the value of my money in stocks?
Increase in price per share
Dividends
Stock splits
All of the above
14. Owning shares of stock:
can increase the value of my money
can decrease the value of my money
provide income from dividends
All of the above
15. An example of a company's debt is a:
corporate bond.
share of stock.
mutual fund.
municipal bond.
16. The investment with the most risk would be:
a savings account.
U.S. Treasury bonds.
corporate stocks.
corporate bonds.
Savings & Investment Quiz Answers
- True
- False
- True
- False
- True
- False
- True
- True
- True
- passbook account
- $21
- 12 years to double
- Increase in price per share
- All of the above
- corporate bond
- corporate stocks
